Internet Solutions announces hosting price hike

/me just sits down and cries... :(

I cannot help but accept Eskom is the true reason. And so the knock on of yet another IDIOT TAX (my term for the resultant increase in expenses due to gross mismanagement of South African government and semi-government institutions resulting in higher fees) comes to light. Wonderful!
 
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I wonder what effect this is going to have on local sites. I hate it when a South African site is hosted overseas but, sadly, that seems to be more and more sensible.

Also, is this a sign of things to come; will ADSL prices go up as well? That wouldn't be good for poor Afrihost or consumers not paying a fixed price forever.

I wonder what percentage electricity is of their total costs. If the 10% hosting increase doesn't cover the 31.3% increase in electricity (for all their services), I assume prices of other services will also increase. :(
 
shouldn't affect ADSL me thinks.. but hosting server farms certainly. Curious if cheaper bandwidth was taken into account too.. or was it just a quick calc based on Eskom increase effect.
 
The reasons given don't make sense to me. Eskom's prices were increased about 6 months ago. Why does this filter through only now? The Rand has been quite strong over the recent months too. Why are the infrastructure costs rising?
 
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antowan said:
/me just sits down and cries... :(

I cannot help but accept Eskom is the true reason. And so the knock on of yet another IDIOT TAX (my term for the resultant increase in expenses due to gross mismanagement of South African government and semi-government institutions resulting in higher fees) comes to light. Wonderful!
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+1000000
 
10% increase is well controlled, but, it's just too much of a round figure for me to believe that it was accurately calculated.
 
o well, when petrol goes up everything else goes up, never comes down mmmm....
 
moklet said:
O well there goes the hope of cheaper local hosting, another reason to host overseas as there the price stays the same or you get more and more resources
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Remember that IS profit from your customers paying for international bandwidth.

It's a double edged sword, with the only loser being the customer.

IS should have introduced differential local vs international bandwidth billing for hosted sites 4 years ago.
 
So during a time when the rand is at it's strongest and it should cause deflation the government will cause inflation and all that is a business will jump on this electricity bandwagon as an excuse to hike prices.

Typical!
 
i'm hosting a server on the rackspace cloud.

1 x processor
512mb ram
20gb hard disk space
ubuntu jaunty

i have full console + ssh acces and am running websites, php, mysql, webservices and web applications on it. ping time is 160ms. it costs me $22 (R160) /month and because it is on their cloud, there is 100% uptime.

bandwidth out = $0.22/gb (R1.60/gb)
and bandwidth in = $0.09/gb (R0.90/gb)

tell me again, why would i want to host with *anyone* in SA?
 
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I wonder how they can justify this when others are lowering their prices.
 
zeely said:
i'm hosting a server on the rackspace cloud.

1 x processor
512mb ram
20gb hard disk space
ubuntu jaunty

i have full console + ssh acces and am running websites, php, mysql, webservices and web applications on it. ping time is 160ms. it costs me $22 (R160) /month and because it is on their cloud, there is 100% uptime.

bandwidth out = $0.22/gb (R1.60/gb)
and bandwidth in = $0.09/gb (R0.90/gb)

tell me again, why would i want to host with *anyone* in SA?
Click to expand...

+1 000 000 000
 
I guess it was just a matter of time before we saw this sort of price hike blamed on electricity. It's going to be interesting, now that there is increasing competition in data centres, to see who is able to maintain or lower pricing to attract companies back to SA. Whatever the reasons, IS is potentially putting itself out of a competitive market.

What is more worrying is that this may now give the mobile operators and others an excuse to do the same, to offset the effect of them having to lower interconnect etc. They are also massive consumers of electricity.
 
Its not like everyone didnt expect this to happen eventually .. imagine what its going to be like in 3 years when the price is 150% more than it is now, and the infrastructure has been built ..

I dont suspect we will see a decrease, but Im sure the pockets will get fatter .. (not mine tho)
 
Everyone needs to make some more money, so the electricity price hike is just an excuse the consumer will accept, bend over, and be shafted with.
 
What infrastructure costs?

I know Seacom charges in dollar, but the Rand has been doing very well the last few months (except for the past week or so but it's recovering)

This means that anything, including hardware, should also cost less than it used to when the Rand was at R9 to the dollar (and higher)

With the Eskom price hike of 31%, and as many have pointed out, only 6 months later, they're hiking the price? WTF?

How about installing some solar panels to offset the cost of electricity used? Maybe a windmill up on top of the roof? Installing hardware that's "green" and energy saving?

Oe... how about *cloud servers* or is that just a bit over your head IS?

"day-tuuk-ur-jaaaaaawbs!"
 
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